Michael Kors Holdings to close 125 stores as sales lag

Michael Kors Holdings plans to close up to 125 stores during the next two years, citing continued weak sales at its luxury stores.

The London-based company also issued a weak outlook and figures for comparable store sales that were disappointing, sending shares down 8.5 percent at the close Wednesday.

An official list of stores to be closed wasn’t available on Wednesday.

The brand operates two stores in Southwest Florida, at the 2-year-old Mall at University Town Center and at Ellenton Premium Outlets. The new mall has already suffered a few hits from the tough brick-and-mortar retail climate. Cache, Boston Proper and BCBGMAXAZRIA have all left the mall as part of corporate closings. Bebe, too, is in the middle of a closeout sale at the new $315 million indoor shopping center.

In its fourth quarter, Michael Kors Holdings lost $26.8 million, or 17 cents per share, after reporting a profit in the same period a year earlier. Earnings, adjusted for asset impairment costs, were 73 cents per share. The results topped Wall Street expectations by 3 cents, according to a survey by Zacks Investment Research.

Sales in the Americas region, which makes up the bulk of revenue, fell 18 percent to $721 million.

Same-store sales, a key measure of a retailer’s health, fell 14.1 percent, which was worse than Wall Street had expected.

“Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels,” Chairman and CEO John D. Idol said.

He said the company needs to take further steps to elevate “the level of fashion innovation” and enhance the store experience.

For the year, the company reported profit of $552.5 million, or $3.29 per share. Revenue was reported as $4.49 billion.

For the current quarter ending in July, Michael Kors Holdings said it expects revenue in the range of $910 million to $930 million. Analysts surveyed by Zacks had expected revenue of $932.2 million.

The company expects full-year earnings to be $3.57 to $3.67 per share, with revenue expected to be $4.25 billion.

Michael Kors Holdings shares have declined 16 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed nearly 8 percent. The stock has declined 13 percent in the last 12 months.

Herald-Tribune staff writer Maggie Menderski contributed to this report from the Associated Press.